Recession

Lagarde: 'Ramaphosa right man to lead SA to prosperity'

By Bonga Dlulane

The International Monetary Fund (IMF) Managing Director Christine Lagarde has warned that the biggest risks facing South Africa’s economy are complacency and high expectations and slow service delivery.

After second quarter gross domestic product data on Tuesday showing the economy had shrunk 0.7% knocked more than 4% off the rand, it has steadied, triggering some short-covering as sellers looked to close positions.

The projected 25 cents increase in the fuel price has been cushioned through the government’s Energy slate account that is normally reserved for fluctuations and to balance out erratic price movements.